By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 14, 2013
Winnipeg – ICE Futures Canada canola contracts closed higher on Monday, taking some direction from the rally in the CBOT soy complex.
Speculators were said to be covering short positions in both soybeans and canola as they continued to contemplate the updated USDA supply/demand data released Friday, January 11. While the numbers contained few surprises as far as the oilseeds were concerned, a broker said the January report “stirred up the market” and accounted for some of Monday’s strength.
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Weather forecasts pointing to drier conditions in parts of South America were also supportive for canola, although there were still no major problems for the soybean crops in Brazil or Argentina.
In addition to the speculative short-covering, exporters and domestic crushers continue to show good demand for canola as well, said participants.
On the other side, the rally encouraged some scale-up farmer selling. However, most producers are said to be bullish on the market and were said to be holding out for further gains.
About 10,218 canola contracts were traded on Monday, which compares with Friday when 9,942 contracts changed hands. Spreading accounted for about 5,990 of the contracts traded.
Milling wheat, durum, and barley futures were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.
